April 19, 2024
Finance
Korean firms’ net profit grows overcoming slowing sales
[THE INVESTOR] South Korean companies listed on the country’s main KOSPI market reported growth in their operating and net profits in the first nine months of 2016, official data showed on Nov. 15.
But the profit growth is largely due to cost-cutting and other belt-tightening measures rather than increased revenue, according to the data compiled by the Korea Exchange and the Korea Listed Companies Association.
The consolidated financial statements of 501 KOSPI-listed firms presented that their total revenue inched down 0.49 percent to 1,186.2 trillion won (US$1,100 billion) during the January-September period from a year earlier.
Their operating and net profits went up 11.67 percent and 10.79 percent to 91.9 trillion won and 68.3 trillion won, respectively.
Compared with the second quarter, their third-quarter sales decreased 2.41 percent, with operating and net profits also plunging 11.36 percent and 14.94 percent, respectively.
If the top cap Samsung Electronics, which has suffered a decline in profits over the global recall and terminated sale of its Galaxy Note 7 phablet, is excluded, sales fell 1.87 percent, while operating and net profits slid 3.15 percent and 12.59 percent, respectively.
Meanwhile, the debt ratio of the firms slipped 6.48 percentage points to 112.37 percent at the end of September from late last year.
(theinvestor@heraldcorp.com)
But the profit growth is largely due to cost-cutting and other belt-tightening measures rather than increased revenue, according to the data compiled by the Korea Exchange and the Korea Listed Companies Association.
The consolidated financial statements of 501 KOSPI-listed firms presented that their total revenue inched down 0.49 percent to 1,186.2 trillion won (US$1,100 billion) during the January-September period from a year earlier.
Their operating and net profits went up 11.67 percent and 10.79 percent to 91.9 trillion won and 68.3 trillion won, respectively.
Compared with the second quarter, their third-quarter sales decreased 2.41 percent, with operating and net profits also plunging 11.36 percent and 14.94 percent, respectively.
If the top cap Samsung Electronics, which has suffered a decline in profits over the global recall and terminated sale of its Galaxy Note 7 phablet, is excluded, sales fell 1.87 percent, while operating and net profits slid 3.15 percent and 12.59 percent, respectively.
Meanwhile, the debt ratio of the firms slipped 6.48 percentage points to 112.37 percent at the end of September from late last year.
(theinvestor@heraldcorp.com)
